According to Compounding Quality on Twitter, Charlie Munger’s decades-long analysis of why intelligent people make poor decisions highlights 24 standard causes of human misjudgement. For cryptocurrency traders, these cognitive biases—such as incentive-caused bias and social proof tendency—can lead to costly mistakes in fast-moving markets (source: @QCompounding, May 20, 2025). By recognizing these psychological pitfalls, traders can improve risk management, avoid herd mentality, and make more rational decisions when navigating volatile assets like Bitcoin and Ethereum. This behavioral insight is increasingly crucial as crypto markets grow more competitive and sentiment-driven, influencing everything from short-term trades to long-term investment strategies.

According to Omkar Godbole (@godbole17), $BTC experienced notable price volatility following the latest Fed meeting, with intraday swings impacting both support and resistance levels (source: Twitter, May 7, 2025). Traders are advised to closely monitor macroeconomic cues from the Federal Reserve, as these events historically trigger short-term momentum shifts in Bitcoin. Recent price action suggests increased sensitivity to policy statements, reinforcing the importance of risk management and timely entries for crypto traders seeking to capitalize on post-Fed volatility.